Telecom wars in India have transcended data pricing and subscriber counts—they have become a war for credit! With its decision to invest ₹20,000 crore into its newly established non-banking financial company (NBFC) Airtel Money Limited, established by the Reserve Bank of India (RBI) in early 2026, Bharti Airtel will directly compete with competitors like Jio Financial Services as part of a broader shift in corporate control of finance through digital lending.
What Does Airtel’s NBFC Move Mean for the Industry?
Airtel Money Limited received its NBFC license from RBI on February 13, 2026; Airtel holds 70% of the shares in this subsidiary and its promoter Bharti Enterprises holds 30%. In general, the intent of the investment is to create a large-scale digital lending operation enabling expanded formal access to credit for customers and businesses. The NBFC cannot accept public deposits, however, according to the RBI, it can make loans and provide credit products.
The rollout follows the rollout of Airtel’s lending service provider (LSP) model, which had already disbursed more than ₹9,000 crore through partnerships with traditional banks and credit unions. With its purchase of its own NBFC, Airtel will be able to offer direct loans (repaying itself) increasing both its influence and ability to increase profits.
Executive Vice Chairman Gopal Vittal stated that Airtel’s ambition of creating a “future-ready digital lending company” is being accomplished through technology, trust, and analytics.
The real advantage: Airtel’s 466 million customers
Airtel has more than 466 million subscribers in India and has developed an in-depth understanding of its customers’ purchase patterns and ability to repay. The Airtel ecosystem provides an excellent foundation for developing a distribution network for various types of credit products, including personal loans and merchant financing.
This model of lending has already been proven successful by Jio Financial Services, which has expanded its loan portfolio in just two years using a similar approach.
As we saw with previous trends, companies want to be financial institutions; for example, Apple has begun offering credit cards, Amazon is providing commercial loans to businesses, and Starbucks has significant amounts of funds stored in customer wallets.
Lending provides businesses with three main benefits when compared to most forms of non-financial business — lending provides businesses with:
1. Higher profits: Lending generates a relatively constant stream of interest income.
2. Increased customer loyalty: Customers will remain loyal to the credit provider whenever they use them for credit-related services.
3. Better targeting of potential new customers: Better financial behavior enables better targeting of potential new customers and a better ability to assess risk.
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Why every big company now wants to lend
Recent increases in household debt have more than doubled due to the rise of digital lending, an increase in aspirational consumption, and easier access to credit. In comparison, India’s credit to GDP ratio is currently only 53%. This tells us that there is plenty of room for growth.
NBFCs are the best option when it comes to entry into the financial services and credit markets because they have:
- A more straightforward route for entry
- Regulatory barriers are lower
- More flexibility in lending
It also allows regulators to have oversight:
Telecom companies are poised to become fintech companies.
Airtel’s launch of an NBFC marks a huge shift in the telecom business model.
Telecom companies are changing; they are creating digital ecosystems where customers can communicate with each other, make payments, and now obtain credit. The goal is to control how people communicate, spend, and borrow.
The competition between Airtel and Jio is not just about telecommunications anymore. Instead, it is about who will be the winner in determining the future of finance in India.
In the digital economy, companies that provide credit will ultimately have control over everything else.
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